Many retirees should start thinking about their annuity and pension options as early as possible to ensure that they achieve the best annuity deal and have the best type of annuity to suit specific circumstances.
One type of annuity is a fixed rate annuity. This option is popular for people who want peace of mind and security in their pension income and do not want to worry about their rates being affected by interest rates or what the economy is doing. The fixed rate means that every month, no matter what happens, you receive a fixed sum of money and this might be for the rest of your life or just a few years depending on what you personally want from your annuity.
One retiree said, €Having this fixed rate option offers me peace of mind and a sense of security. I am able to plan my retirement more easily and there is no more worry about whether the recession might affect my money. I am really glad with my fixed annuity 5 year choice. I will review what I need from my annuity again after these five years are up €" perhaps I can even secure a better rate.€
Fixed income annuities are not the only option you can have when it comes to your annuity. Many people may qualify for an enhanced annuity rate which essentially means that you receive a better, more attractive income because the pension company calculates that you will have a shorter life expectancy than the average person €" meaning that they will not have to pay out for you for as long. This means they are able to offer an enhanced rate. The enhanced rate is given for a variety of reasons; medical reasons are the most common.
Any illness such as heart issues or cancers will allow for an enhanced rate but also other more minor conditions such as asthma or diabetes annuities are also popular. Your employment history might also have an effect on your annuity, for instance if you have been a minor then you are likely to receive a higher rate because your life expectancy is likely to be less than people who did not work in this trade.
One annuity advisor said, €It is very important to research as much as you can before settling on any one annuity, there are so many options that you do not want to make a bad decision.€
One type of annuity is a fixed rate annuity. This option is popular for people who want peace of mind and security in their pension income and do not want to worry about their rates being affected by interest rates or what the economy is doing. The fixed rate means that every month, no matter what happens, you receive a fixed sum of money and this might be for the rest of your life or just a few years depending on what you personally want from your annuity.
One retiree said, €Having this fixed rate option offers me peace of mind and a sense of security. I am able to plan my retirement more easily and there is no more worry about whether the recession might affect my money. I am really glad with my fixed annuity 5 year choice. I will review what I need from my annuity again after these five years are up €" perhaps I can even secure a better rate.€
Fixed income annuities are not the only option you can have when it comes to your annuity. Many people may qualify for an enhanced annuity rate which essentially means that you receive a better, more attractive income because the pension company calculates that you will have a shorter life expectancy than the average person €" meaning that they will not have to pay out for you for as long. This means they are able to offer an enhanced rate. The enhanced rate is given for a variety of reasons; medical reasons are the most common.
Any illness such as heart issues or cancers will allow for an enhanced rate but also other more minor conditions such as asthma or diabetes annuities are also popular. Your employment history might also have an effect on your annuity, for instance if you have been a minor then you are likely to receive a higher rate because your life expectancy is likely to be less than people who did not work in this trade.
One annuity advisor said, €It is very important to research as much as you can before settling on any one annuity, there are so many options that you do not want to make a bad decision.€
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